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The Elephant in the Room - Custodial Fees

Updated: Jan 30, 2023

Sometimes You Get What You Pay For


Administrators and facilitators offer lower fees because they provide fewer services. But, as you can see in the chart below and as discusses in the last blog, you get what you pay for.


If you are working with a certain IRA service provider because they offer lower fees, look at what your clients are “saving” versus what you are sacrificing in quality of service. Do the “savings” exceed what it costs your business to not receive the funds as quickly as possible? Does it exceed what your clients are missing in returns due to increased investment downtime caused by the IRA service provider? Probably not…


Companies should not have to sacrifice their standards to potentially save their clients a few bucks. It’s a win-win for no one except the below average IRA service provider.


It is important to keep in mind that per IRS regulations, licensed Self-Directed IRA custodians cannot earn a commission from their client’s investments. This means that their main source of revenue - to run their business and provide clients with the ability to build their retirement future’s - is through their administrative fees.


The Preferred Trust Company Standard

We know that you have a choice when selecting an IRA service provider. When you choose to partner with Preferred Trust Company, the security of your clients funds and the integrity of your business are our top priority.

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